Helping clients, families, and caregivers is not just a job for us, it is our passion. We help people build a plan they can depend on, find access to great senior care, and preserve assets instead of going broke paying for care.

02/22/2019

“Before you set out on a plan to school your grandkids about money, talk with their parents.”

One of the best financial gifts you can give your grandchildren is the knowledge of how to manage their money. The habits they learn at a young age and the attitudes they have about money can last a lifetime. The way people think about finances can make the difference between having enough money to pay the bills on time and save for emergencies and the future … or being broke all the time.

You might have the best of intentions for your family. However, if your actions cause hurt feelings or undermine your children, the family will suffer instead of benefiting. Before you set out on a plan to school your grandkids about money, talk with their parents.

Let them know what you want to do, and why you want to do it. Make sure they understand that you intend no disrespect and that your actions are not intended to be a criticism of their parenting or financial habits. You want to be supportive of their parenting, not tear it down.

Suggest that the grandchildren will sometimes listen to their grandparents more than their parents. Let your children know what you propose to do, and make sure it breaks none of their family rules or principles. Only proceed with the agreement of the parents. Be prepared to adjust some things you want to do, to honor their rights as parents.

Teaching the Value of Money

Young people often think of money as a thing you spend. They have no bills and turning 30, much less retiring, seems forever away for them. The only purpose many teens and preteens see for money, is to buy things they want.

You can teach them other goals for money, by creating tangible categories. For example, if you are giving a grandchild $30, get three $10 bills and put each one in a separate envelope. Label the envelopes “Giving,” “Saving,” and “Spending.” With older grandchildren, add a fourth category, “Investing.”

Encourage Saving by Matching Funds

If a grandchild has a small allowance, he might get impatient about how long it can take to save up for a purchase. If you match the amount she saves, she will see her savings grow faster.

Offer ways for the grandchild to make money. This strategy will teach the value of money and hard work. Pay your grandchildren to do chores, read, get exercise, and engage in other behaviors you and their parents want to encourage. Have a set rate you will pay the grandchild to draw a picture or write a one-page report on a subject that interests him. He will learn early that he can be in control of his finances.

Field Trips Are Fun

Take your grandchild along, when going to withdraw cash or deposit money in an ATM. Explain how the machine works and how to use one safely. Take her into the bank, write her a check and let her use it to open a small savings account. While you do this, show her how to write a check and what each portion of the check means. Make sure she understands that you must have the money in the account, before you can write a check on it.

Every state has a unique set of regulations, and your state’s rules might differ from the general law of this article. Talk with an elder law attorney in your area.

02/21/2019

“With savvy financial strategies, you can take control of your finances and be the boss of your money, instead of feeling at its mercy.”

Whether you are already retired or considering it, you need to know if you will have enough money to pay your current bills and have a secure future. While it's tempting to put off taking a long, hard look at your assets, income, debts and spending, you need to summon up the courage to do so. Why? Because that is the first step of how to be the boss of your money after age 60.

Step One – Take an Honest Look in Your “Money Mirror”

You cannot take charge of your finances, if you do not know what they are. Thanks to online access to accounts, you can look up the current balances of your credit cards, car loan, mortgage, personal loans and other debt. Also check the amount of the interest rate and monthly payment for each account.

Step Two – Write a “Reverse Budget”

Instead of writing up a pipe dream of financial austerity that would make you miserable, go through your checking and other accounts and write up a summary of your income and how you actually spend money. Also put on paper how much money you save, invest and put into your retirement account throughout the year.

Step Three – Attack the Debt

Nothing will create a millstone around your neck like debt, when you are on a fixed income. For example, if you are still making a $500 monthly car payment, then that is $500 a month you cannot spend to do fun things now that you have the time.

There are many theories about the best way to pay down debt. The reason there are so many techniques, is that financial management is not “one size fits all.” A strategy that works wonders for you, could be disastrous for your next-door neighbor.

It is generally a good idea to pay off the highest-interest debt first, but not always. For example, if you are close to paying off your car loan and your payment is $500 a month, eliminating that debt will free up $500 every month and reduce your cash flow stress. Run several scenarios for paying off your debt and see how each one will affect your bottom line.

Step Four – Plan for Your Next Chapter

Rather than thinking about retirement from your current job or career as an all-or-nothing situation, be open to the possibility of starting a new business or pursuing some other passion when you retire. Many people find immense gratification from teaching during retirement, sharing their knowledge, experience and wisdom with others. If you earn income from your next chapter gig, you can get out of debt quicker and build up a more substantial nest egg.

Step Five – Rethink Housing Options

Instead of wondering how you will afford your house payment, utilities, real estate taxes, homeowner’s insurance and yard and home maintenance on a fixed income, considering other options could flip your house from a financial burden to a benefit. Many people sell the big house and use the equity to buy a smaller home or condo with no mortgage.

Another option is to stay put but rent out a room, garage apartment or tiny house to provide a stream of income. Some people take out reverse mortgages. However, there are significant risks and downsides inherent in reverse mortgages, so get professional advice, if you are thinking about that option.

With savvy financial strategies, you can take control of your finances and be the boss of your money, instead of feeling at its mercy. The laws are different in every state, and this article is about the general law. Therefore, talk with an elder law attorney near you.

02/20/2019

“The number of people who attribute their leaving the workforce to being forced or partially forced into retirement has skyrocketed.”

When people in their fifties and older leave their jobs, most do so involuntarily. If your financial situation means you need to maintain your full-time job until you are ready to retire, develop a Plan B. Most older workers stop working against their will.

Full-time, long-term employment is not as stable as it once was. A generation or two ago, a person could go straight from high school to a job. If he worked hard, he could count on that job being there as long as he wanted it. He could also expect a pension from the company. However, those are also now very rare. During the last three decades, nearly 30 percent of people with long-term, full-time jobs experienced layoffs at least one time, and many got laid off multiple times.

Age Discrimination

Some employers try to force out older workers, by making their working conditions unpleasant. The supervisor cuts the older employee’s pay or hours, hoping she will look for a job somewhere else. Fifteen percent of older employees who stopped working, blame it on deteriorating conditions like these.

Another 13 percent of older workers left their jobs unexpectedly, and researchers suspect they were forced out of their jobs. The number of people who attribute their leaving the workforce to being forced or partially forced into retirement has skyrocketed. Fifty-five percent of employees over the age of 50 fell into this category in 2015, which is a sharp increase from 33 percent of older workers in 1998.

Why Employers Force Out Older Workers

A person who has been on the job for 30 years, will likely command wages higher than a young person who is fresh out of school. A manager might want to cut costs by hiring entry-level people, but doing so overlooks the value of the older worker.

Older employees have a great deal of experience with the work they do, but they bring much more than that to the table. These workers have more practice dealing with difficult people and finding solutions to problems.

While an older employee might not have as much energy as a much younger candidate, the older worker’s work ethic, loyalty and integrity can cause more output than a younger person will deliver. The older employee’s maturity can make for fewer workplace conflicts and problems than one staffed with entry-level employees. Older workers are also reliable. They are far less likely to stay out partying on a work night and call in sick the next day or show up, but be unproductive.

Crunching the Numbers

Out of all workers age 50 or over in full-time, long-term jobs, 56 percent of them lose their jobs involuntarily. The remaining 44 percent break down like this:

19 percent retire because they want to,

Nine percent stop working due to caregiving, their health, or some other personal reason, and

Only 16 percent continue working if they want to.

Talk to an elder law attorney near you, because your state’s regulations can differ from the general law of this article.

02/19/2019

“Thieves are using a high-tech trick to make someone else’s name or number fraudulently show up on your Caller ID.”

Just when you thought you knew how to keep con artists from ripping you off, here comes a new scam. This one is particularly devious. It involves Social Security and your telephone. Scammers are tricking Caller ID to make you think they are calling from a government agency.

How the Scam Works

Let’s say you have Caller ID on your phone. Before answering, you check to see who is calling. If you do not recognize the number, you let the call go to voice mail. Most telephone crooks do not leave recorded messages.

In this new scam, your Caller ID will say that the call is from 800-772-1213, which is the Social Security Administration’s (SSA) national customer service number. Thinking it is a safe caller, you answer. The person on the phone asks you to verify your name, address, Social Security number and date of birth. DO NOT give out this or any other personal or financial information over the phone, even to someone who appears to call from the Social Security Administration.

Thieves are using a high-tech trick to make someone else’s name or number fraudulently show up on your Caller ID. The call is not from the Social Security Administration. It is a crook trying to steal your information. This example is only one of several variations on this new con game. Now that fraudsters have this technology, they can “hijack” anyone’s name or telephone number to make it appear on your Caller ID.

How You Can Know if the Call is a Scam

Even though these crooks are extremely deceptive, several clues will tell you if just hang up the phone. Here are some tips:

If the caller – any caller – asks for your Social Security number, hang up. Legitimate government agencies do not ask for your Social Security number over the telephone. Your bank and other companies will not ask for this information over the phone.

If the caller asks for your date of birth, full legal name, or address, end the call at once. Real agencies and reputable companies do not ask for these things.

If the caller asks for your bank account or other financial information, hang up. Your bank already knows this information and other people do not need it.

If the caller threatens to terminate your Social Security benefits, if you do not confirm your Social Security number, hang up. The SSA will not call up and threaten you or ask for your Social Security number. The SSA makes all of its requests for information in writing via US Mail, not by telephone.

If the caller promises to approve or increase your Social Security or other benefits, it is a scam call. Hang up.

What You Should Do

The government wants to know about suspicious calls that claim to be from the SSA. Report these calls to the Office of the Inspector General (OIG). The phone number is 800-501-2102. The number for the hearing-impaired is 866-501-2101. You could also go to the OIG’s website at oig.ssa.gov/report to let them know about the call.

Talk with an elder law attorney near you, to see if your state’s regulations vary from the general law of this article.

02/18/2019

“The children get a loan that might have cost them thousands of dollars of fees with a traditional lender, and the parents get an income stream that gives a better return than a savings account would.”

Many seniors are lending money to their adult children. The kids get a loan that might have cost them thousands of dollars of fees with a traditional lender, and the parents get an income stream that gives a better return than a savings account would. At least – that happens when everything goes as planned. If you are thinking about making a significant loan for your child to buy a house or car, you need to evaluate this question – should you play banker for your adult children?

Reasons That Parents Make Loans to Their Adult Children

Besides the obvious motive of wanting to help their children, many parents want to make their liquid assets work harder for them. Let’s say you liquidate a significant portion of your investments out of concern about the stock market. In the past, you could dump that money into a savings account that would earn interest and be safer than the stock market.

The problem now is that savings accounts have extremely low yields. The average savings account currently pays only 0.06 percent interest per year. Many of the big, national banks pay only 0.01 percent. Making a loan to your child with an interest rate of 2.5 or 3 percent, can help the parents keep up with inflation. A savings account with a balance of $100,000 and a 0.01 percent yield will generate only $10 a year in interest. Lending your child the same $100,000 at 2.5 percent will get you $2,500 a year in interest.

How to Take the Idea for a Test Drive

Understandably, many parents worry about making a large loan to an adult child. Not to worry – you can make a loan for the down-payment instead of the entire mortgage. You risk a smaller amount, and both you and your child can discover if this arrangement works for all of you.

Depending on the mortgage and the total down-payment, the down-payment loan can help your child qualify for the mortgage and not have to pay for Personal Mortgage Insurance (PMI). PMI can add $100 or more to your child’s monthly mortgage payment.

Downsides of Parent “Bankers”

It could be devastating to you financially, if your child does not make the loan payments. This situation could cause you to have to work for many extra years or not be able to retire. You could find yourself in poverty when you retire. Only lend money that you can afford to lose.

You need to consider how lending a substantial sum of money will affect the money your other children inherit. Make sure that you work with your estate planner to protect your estate’s right to the money. Finally, consider how the loan will affect your relationship with your child and your other children. The Thanksgiving meal can be awkward, when family members borrow money from each other.

Tax Issues of Lending Money to Your Children

You must create the proper documents, like a mortgage or promissory note, to keep the IRS from treating the loan as a gift and imposing a steep gift tax. It is necessary to charge at least the rate of interest that the IRS requires. These rates change every month, so you will need to check and re-check. You will also have to register the mortgage with an approved company for your children to take the mortgage interest deduction.

Your local elder law attorney can help you prepare the documents you will need to memorialize the loan and help you strategize how to make the loan work with your estate plan. An elder law attorney in your area can explain how your state’s laws might differ from the general law of this article.

Although it's hard to admit that you need a cane or walker to help you keep your balance, one of these implements can mean the difference between falling or not. The Mayo Clinic recommends canes, walkers and other practical items that can assist you in avoiding falls, including:

Shower and tub bars for you to grasp, while getting in and out and while bathing;

Non-slip treads for the bottom on the shower, along with a hand-held shower wand and a waterproof, sturdy seat that cannot tip over;

A toilet with armrests and a raised seat;

Handrails on both sides of all stairs; and

Non-slip treads for high-risk slipping areas, such as wooden stairs.

Talk with Your Doctor.

Let your physician know your concerns about falling. Tell her if some of your medications make you feel groggy, dizzy, tired or foggy-headed. She might be able to prescribe different drugs to treat your condition without those side effects. Ask your doctor if any of your prescriptions increase your risk of a fall accident.

Discuss previous falls and close calls with your doctor to look for a pattern. Work together to develop a strategy for preventing falls. Consider getting a referral to a physical therapist to create a customized exercise regimen to improve your strength, gait, balance, coordination and flexibility to make falls less likely.

Make Your Home Less Hazardous

Keep your shoes on when indoors for more support and to reduce joint pain. The type of footwear you walk around in matters. High heels can cause you to lose your balance. You can slip and stumble, when wearing flimsy shoes like flip-flops and loose slippers. It can be hard to get a feel for the floor’s surface, when you wear thick-soled shoes. Make sure that your shoes fit well, have non-skid soles and are sturdy.

You can also reduce your risk of falling by taking these steps:

Keep your home well lit. It is hard to avoid tripping on something, if you cannot see it. With today’s LED light bulbs, turning on the lights will not increase your electric bill the way it did in the past. Use night lights throughout your rooms and hallways. Never go up or down an unlit stairway.

Have someone relocate electrical cords and phone cordsout of your path. Run the cords along the walls and secure them to prevent tripping.

Move items you regularly use down to lower shelves, so that you can reach them without climbing onto a footstool or step ladder.

Remove all clutter from the floors and stairs. Keeping your path free of objects is essential for avoiding falls.

Remove loose rugs or secure them with tacks or slip-proof backing.

Have all irregular flooring repaired or replaced.

All spills are slipping hazards. Be sure to clean up spilled food and liquids.

Be sure to talk with an elder law attorney near you to find out how your state’s law differs from the general law of this article.

12/12/2018

“One of the best ways to make ends meet with a fixed income is to spend less money.”

Very few Americans have enough money saved for a comfortable retirement. Whether you lost money during the recession, had a financial crisis like massive medical bills, went through divorce, or just never had enough extra money to build up much of a nest egg while working and raising your family, you might be facing an uncertain future without the security you would prefer in retirement.

Move. Either downsize to a smaller house or put down your roots in a less expensive town. Housing gobbles up more of the budget than anything else for most people.

Benefits of a smaller home:

Reduce or eliminate your mortgage payment. You might buy a smaller house for cash with the equity you unlock when you sell your home. If you have to take out a mortgage for a smaller house, you will likely have a lower monthly mortgage payment than you did for the bigger home.

The lower your house’s appraised value is, the lower your property taxes will be. Since real estate taxes can add up to thousands of dollars a year, they affect your cost of living.

A smaller home will need less electricity and gas to heat and cool. Utilities can run you hundreds of dollars a month.

Why Location Costs You

Some areas within a community are far more costly than others. You need not live in a great school district after the kids grow up. Those school districts usually come with a hefty price tag.

Many of the top school districts are in the suburbs, where you must get in the car and drive to shopping, restaurants, entertainment and most anything else. Consider moving to a more urban area, where you can walk to nearby amenities.

You might save a bundle if you move to a different state with more affordable housing, a lower cost of living and a milder climate that saves you on your utilities.

Ditch the car. Either sell one of your vehicles and share the other, or get rid of the car entirely. Owning a car can cost you over $10,000 a year, particularly if you have a car payment. Paying for gas, license and registration, personal property tax, routine maintenance, tires, repairs and insurance can use up more than half of your Social Security check. Learn how to share the car with your spouse. Use public transportation and ride-sharing services like Uber.

Close the “bank of Mom and Dad.” You will not live forever, and your kids must learn how to stand on their own two feet. Better that they learn now, while they have the benefit of your wisdom and advice than later, when they have no such emotional support. Helping your adult children can prevent you from contributing what you should to your retirement or from having enough money for yourself after you stop working. Sit down with your children and explain the situation. Set a timeline for your kids to become self-sufficient.

Laws vary from state to state, so talk with an elder law attorney near you. This article covers the general law, which can differ from your state’s regulations.

12/11/2018

After the holidays, you might be looking for ways to focus on your health and well-being. It is fine to enjoy the holidays, but if we continue to indulge ourselves throughout the year, we can be setting ourselves up for fatigue, low energy and a weakened immune system. Let’s plan to feel better in 2019. Here are tips on how seniors can improve their health in the new year.

Get Back to Good Nutrition

You gave yourself permission to nibble on the tasty morsels that accompany the holidays. As the years go by, you might find that some of your favorite treats leave you feeling less than jolly. You are not alone. As we age, some things that change include:

The metabolism gets less efficient, so it is harder to keep off excess weight.

The digestive tract becomes less tolerant of things like spicy or rich foods.

You might experience dehydration.

The immune system can weaken.

Not to worry, you can take control of these facets of aging. Work with a nutritionist to set up some guidelines and meal plans tailored for your situation, including any medical conditions you have and all supplements or prescription drugs you take.

If you prefer to approach this issue DIY, the “old school” advice still works. Eat more fresh vegetables and fruit, whole grains and lean protein. Drink plenty of water, and reserve processed and junk food for special occasions.

Stay Physically and Socially Active

Few things are better for your health, than getting off of the sofa and out of the house. Although it is tempting to become sedentary if your arthritis hurts, your diabetes makes you feel low energy and you have ongoing aches and pains, getting regular activity can improve how you feel. Talk with your doctor about your options for “gentle” exercise, like walking and swimming.

Call your local park system, fitness facility, or community or senior center for information about their programs for seniors. Ask about their 55+ discounts.

Many people become socially isolated after retiring, particularly if most of their friends were people from work. If you find yourself in this situation, you have two options: keep in touch with your old friends from work or make new friends. Some experts suggest that staying engaged socially can help to stave off Alzheimer’s disease and other forms of dementia.

Go to the Dentist

Your tooth enamel gets thinner as you age, so your risk for cavities increases as you get older. Dentists also advise that your likelihood of having a stroke, heart disease and diabetes connects to infections in the mouth. Catching and treating oral problems can protect your overall health.

Do Something New and Different

One of the best ways to maintain your ability to process information, think clearly and perform cognitive functions is to challenge the “little gray cells” with new activities on a regular and ongoing basis. Read books you have never read before. Shake up your daytime, evening and weekend routine every now and then. Listen to a different genre of music for a few days. Take up a new hobby. These activities can help you to stay sharp and independent.

Your state’s regulations might differ from the general law of this article, so talk with an elder law attorney in your area.

References:

A Place for Mom. “10 Healthy Habits for Seniors to Keep.” (accessed November 15, 2018) https://www.aplaceformom.com/blog/11-5-14-healthy-habits-for-seniors/

If you do not have a will or trust, tell your lawyer how you want to benefit your loved ones. The only way to make sure someone knows your wishes, is to put it in writing. Witnesses and other rules vary from one state to the next, but your lawyer can explain your state’s requirements to you.

If you already have a will or trust, read it again and make sure the people whom you want to inherit from you, are actually the ones named in your estate planning documents. Many people go for several years without looking at their legal documents. If you have not reviewed your will for a while, it might name people who are no longer living.

Sometimes things happen that cause you to want to rework your will. Let’s say someone you care about received a diagnosis of a debilitating condition like Parkinson’s disease, or experienced a financial crisis after you signed your current will. You might want to give additional funds or leave your house to this relative to help with her challenges.

On a happier note, you might have new grandchildren or new relatives by marriage. If you do not update your will, you might leave these people out in the cold.

Are You Getting All the Government Benefits You Deserve?

Many people miss out on hundreds of dollars of Social Security retirement benefits every month. If your earnings record is inaccurate, your monthly check might be lower than it should be. You can get your earnings summary from the Social Security Administration and look for incorrect information.

For example, if an employer did not report your earnings or used the wrong Social Security number, you are not getting credit for your contributions to Social Security and Medicare. Your lawyer can give you more information and suggest options to fix the errors and increase your benefits.

Military veterans often miss out on benefits, because they do not know they are eligible. Your elder law attorney can help you find benefits for veterans and assist you with the application process.

Can a Power of Attorney Protect Your Money and Medical Decisions?

Do you know who will handle your finances or make your medical care decisions, if you become incapacitated? If you have no durable power of attorney for financial matters and one for medical care, the courts must decide who will wield this power over you. Many people are not comfortable having their spouse or other next of kin making those calls.

If you want to control your well-being when you are the most vulnerable, talk with your lawyer about getting these power of attorney documents. You can be creative with your papers, which can be useful if any aspect of your life or your wishes vary from the mainstream.

Talking with your lawyer about these three topics can provide financial security and peace of mind. The laws are different in every state, so be sure that you talk with a nearby elder law attorney about your state’s regulations.

12/07/2018

“Well-planned modifications can make it possible for you to stay in your house, instead of a nursing home.”

You can save a fortune by aging in place in your own home, rather than moving into an assisted living facility, but you must evaluate whether your house is appropriate as you grow older. Well-planned modifications can make it possible for you to stay in your house instead of a nursing home. Here are 5 ways to make your house safer and more comfortable as you age.

Entries, Exits, and Hallways

You should have at least one covered entrance to your home to shelter you from adverse weather. This entry should have no steps. Install motion-sensor lights outside all of your exterior doors. Have bright lighting inside all entries with switches that you can reach as you step inside. You should not walk into a dark room from the outside.

Entry doors should be at least 36 inches wide to allow enough room to navigate safely in a walker or wheelchair. Your doorbell should be in an accessible location.

The flooring in your entry foyer should be non-slip. The entry area should have no loose rugs or other tripping hazards.

Hallways should be at least 36 inches wide. Your halls should be brightly lit and have no tripping hazards. Light switches should be at both ends of every hallway, so you need not walk down a dark hall. Ideally, all thresholds should be flush, but if that is impossible, they should be low and accessible.

Making Your Kitchen Senior-Friendly

Have enough open space in your kitchen to turn around in a walker or wheelchair. Keep items off of the floor. Move electric cords that could be tripping hazards. Have task lighting and seated work areas. Relocate regularly-used items from upper shelves to lower ones. Have the counter height in line with your needs. Install roll-out trays in base cabinets. Consider open shelving to access items you use often.

Prevent Bathroom Accidents

At least one bathroom on the first floor should have a shower or tub and enough open floor space to turn around when using a walker or wheelchair. Have someone install grab bars by the toilet and in and around the tub or shower. Use a sturdy shower seat and hand-held shower wand with enough hose to be functional when sitting. The shower and tub must have bright lighting. Your toilet should have armrests and a raised seat. Make sure the flooring in the bathroom and shower are slip-resistant.

Lighting, Electrical, and Security

Consider getting a video doorbell so you can see when someone comes to your front door. Have someone install high/low peephole viewers in your front door or entry door sidelights that provide security and privacy. Have bright lighting throughout your home and exterior. Make sure that all doors and windows have high-quality locks.

Flooring

Slippery floors and tripping hazards cause many fall accidents. Remove or secure loose rugs. Relocate electrical and cords out of your walking path. Keep all clutter off of the floor. Clean up spills right away, to avoid slipping. Repair or replace irregular flooring.

This article covers the general law, which can differ from the regulations in your state, so talk with an elder law attorney near you.